Unexpected letter from Tesco... closing my DD account

Vortigern

Yorkshire_Pud wrote: »

"It costs them money to administer the DD" Often stated on here. How much does it cost and how much more does it cost to process a £1 DD than a £1,000 DD?

How much does it cost them to post out an annual certificate of interest and tax deducted to someone who has only earned 5p in interest and had a penny deducted from that?

Yorkshire_Pud

Vortigern wrote: »

How much does it cost them to post out an annual certificate of interest and tax deducted to someone who has only earned 5p in interest and had a penny deducted from that?

Less than it costs to close down someone's account who is abiding by the T&C.

masonic

Vortigern wrote: »

How much does it cost them to post out an annual certificate of interest and tax deducted to someone who has only earned 5p in interest and had a penny deducted from that?

Do Tesco even send those out? I've had one of my two accounts for over a year and never received one.

To be honest, if the only way to retain your bank account is for the bank to make more money from you than it costs them to provide the service then it is going to become very difficult indeed for anyone who is financially responsible.

Thrugelmir

Yorkshire_Pud wrote: »

Less than it costs to close down someone's account who is abiding by the T&C.

Unless the work is used to fill in available time. Rather than have people sitting around. Volume of work flow is difficult to predict.

Yorkshire_Pud

Thrugelmir wrote: »

Unless the work is used to fill in available time. Rather than have people sitting around. Volume of work flow is difficult to predict.

Yes Tesco is famous for just having people sitting around:rotfl:

Thrugelmir

Yorkshire_Pud wrote: »

Yes Tesco is famous for just having people sitting around:rotfl:

Stick to your day job.

Dizzee_Rebel

[FONT=&quot]Can anyone recommend any of these? [/FONT]

· [FONT=&quot]Providers with Direct Debit feed[/FONT][FONT=&quot]:

[/FONT]

• [FONT=&quot]Aldermore (by posting filled-in form, printed from site)[/FONT]
• [FONT=&quot]AA (1st deposit by cheque) -minimum £1000 to open account (can fall below that later though, with lower interest)[/FONT]
• [FONT=&quot]Egg (Yorkshire BS; allowing multiple DDs on same account) - no longer available for new customers.[/FONT]
• [FONT=&quot]BM Savings (existing accounts only)[/FONT]
• [FONT=&quot]Britannia BS - no longer exists for new customers[/FONT]
• [FONT=&quot]Cheshire BS http://www.thecheshire.co.uk/Custome...t-Debit-forms/. Might only be for mortgages and insurances[/FONT]
• [FONT=&quot]First Save[/FONT]
• [FONT=&quot]ICICI[/FONT]
• [FONT=&quot]Intelligent Finance[/FONT]
• [FONT=&quot]Monmouthshire Building Society (must use paper forms)[/FONT]
• [FONT=&quot]Nationwide Mysave (1 DD only) - Looks like for existing customers only.[/FONT]
• [FONT=&quot]Post Office (online set up)[/FONT]
• [FONT=&quot]Principality BS (can have more than one linked account; to set up, call 029-2038-2000, or send paper forms. As of 01/04/2012, apparently no new DDs can be set up) Being withdrawn as of 08/03/2015[/FONT]
• [FONT=&quot]Saga (if you are 50+; 1st deposit by cheque)[/FONT]
• [FONT=&quot]Scottish Widows [/FONT]
• [FONT=&quot]TESCO Bank (multiple DDs allowed, on both, their Internet Saver and their Instant Access Saver)[/FONT]
• [FONT=&quot]West Bromwich BS (selected accounts)[/FONT]
• [FONT=&quot]YBS offset savings if you have a mortgage there (allows multiple DDs)[/FONT]

* [FONT=&quot]I've read bad reviews about YBS plus I’m not an existing customer, [/FONT]
* [FONT=&quot]Britannia seems to be merging with Co-Operative (read their T&C's - no mention of DD),[/FONT]
* [FONT=&quot]Only bonds available with First Save atm, [/FONT]
* [FONT=&quot]Don't know much about GE Capital, ICICI, Intelligent Finance, or Monmouthshire (apart from the fact you have to leave £100 in the account or it will be closed), [/FONT]
* [FONT=&quot]I've got a Flex Direct account with nationwide so don't really want to use them, [/FONT]
* [FONT=&quot]Shockingly bad reviews about The Post Office, [/FONT]
* [FONT=&quot]Principality don't use DD's, [/FONT]
*[FONT=&quot] Bad reviews about Scottish Widows,[/FONT]
*[FONT=&quot] Tesco Obviously out of the question, [/FONT]
[FONT=&quot]* Don't know much about West Bromwich BS.

Any recommendations appreciated.[/FONT]

MARTYM8`

Dizzee_Rebel wrote: »

[FONT=&quot]Can anyone recommend any of these? [/FONT]



Any recommendations appreciated.[/FONT]

The list is very old and most of the options listed aren't available now or only to existing customers.

Scottish Widows is – as far as I am aware – the only one that really works nationally for small transactions. They may ask for an original statement for the bank account you are debiting from before they set the DD up though.

Aldermore does direct debits – but their savings accounts have a minimum opening balance of £1,000. Same for the AA.

Monmouthshire BS is the other alternative (they have some reasonable regular savers) but you need to live in South Wales/Herefordshire/Worcs/Bristol (NP, CF, SA, LD, WR, GL, HR & BS post code areas) to open an account if you aren’t already a member.

But none are as easy to use/set up as Tesco.

EarthBoy

Dizzee_Rebel wrote: »

[Britannia seems to be merging with Co-Operative

Where did you get your list from? It's well out of date, -Britannia merged with the Co-op Bank several years ago, and your link for the Cheshire no longer works as it merged with Nationwide.

Intelligent Finance is being slowly wound down. It no longer accepts new customers, and even existing customers can't open new accounts.

alanq

Dizzee_Rebel wrote: »

• [FONT=&quot]Cheshire BS http://www.thecheshire.co.uk/Custome...t-Debit-forms/. Might only be for mortgages and insurances...[/FONT]

* [FONT=&quot]I've got a Flex Direct account with nationwide so don't really want to use them, [/FONT]

Cheshire BS is a Nationwide BS brand and will shortly disappear altogether.
http://www.moneysavingexpert.com/news/banking/2013/05/nationwide-to-ditch-cheshire-derbyshire-dunfermline-brands

Yorkshire BS was fined for misselling structured investment products. However, I have been a savings customer for many years and have been very happy with it. It is one of very few organisations that I have never had cause to complain about...so far!
https://www.fca.org.uk/news/fca-fines-credit-suisse-and-yorkshire-building-society-for-financial-promotions-failures